Gap between revenue and expenditure narrows by Rs 550 cr, dept's
revenue up 13%
Mirroring signs of
revival, the Department of Posts (DoP) has registered the highest decline in
deficit in more than 10 years at Rs 550.73 crore in 2011-12 on the back of
increase in revenues, mainly from financial services.
Total revenues of the department in 2011-12 rose by 13.62% to
Rs 7,910.51 crore while expenditure stood at Rs 13,705.4 crore, leaving a
deficit of Rs 5,794.89 crore.
In the previous fiscal,
DoP had revenues of Rs 6,962.33 crore and expenditure of Rs 13,307.95 crore,
reflecting a gap of Rs 6,345.62 crore.
DoP's deficit had jumped
over 80% to 6,641.30 crore in 2009-10 from 3,593.09 crore in 2008-09 due to
implementation of the Sixth Pay Commission's recommendations.
"In
the last one year we have developed an integrated strategy to make India Post,
commercially and socially relevant. The financial performance of the last year
indicates that we have succeeded to an extent. But a lot more need to be
done," Minister for Communications and IT Kapil Sibal told PTI.
According to the
Financial Performance report prepared by Department of Posts for 2011-2012,
revenues from financial services grew by 20.8% at Rs 4,304.07 crore in 2011-12
compared to Rs 3,562.77 crore in FY'11.
Revenue from postal
operations grew by 6.08% to Rs 3,606.44 crore in 2011-12 from Rs 3,399.56 crore
it registered in FY'11.
Sibal said that he is
expecting revenue of DoP to grow by 20% in the current financial year.
"This financial year we are targeting revenue increase of plus 20%.
I am happy that India Post is moving in the right direction. Now we need to
increase our speed," he said.
DoP has appointed
Boston Consulting Group to prepare an appropriate business structure for the
emerging and premium services of India Post.
The postal department has
floated expression of interest to appoint a consultant for preparing detailed
project report (DPR) of its ambitious Post Bank projects and this report is
expected to be finalised by end of this calendar year.
"The Post Bank project will rejuvenate
financial services offered through post offices," Sibal said.
DoP has already announced to set-up 1000 ATMs across country as part of its
financial services.
Sibal has also asked DoP introduce premium logistics services in select 80 to
90 cities within six months to tap the expanding e-commerce market in the
country and enhance its revenue by 15%.
In its ongoing transformation process, the
department entered into a partnership with state-run telecom company BSNL to
provide money order service using mobile phones for which it expects to start
pilot project by September.
Press Trust of India /
New Delhi Jul 05, 2012,
